The Single Market would allow free trade with Europe, but would also mean accepting freedom of movement

Asked about the merits of remaining part of the European Economic Area, Mr Walker said: “As the UK is party to the EEA agreement only in its capacity as an EU member state, once we leave the European Union the EEA agreement will automatically cease to apply to the UK.”

Yet when asked if Britain was set to leave the Single Market earlier this month Downing Street insisted that no such decision has been made.

A spokesman said: “We are not going to reveal our negotiating position.”

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Campaigners for a “soft Brexit”, who want Britain to stay in the Single Market, are seeking a legal challenge to give MPs a separate vote on that departure.

But the news delighted those pushing for a so called “hard Brexit” where the UK will not remain a member of the single market.

Tory Brexiteer Dominic Raab told The Sun: “This is just common sense, a carefully managed clean break, that allows us to take full advantage of the opportunities of Brexit – from immigration control to free trade.”